Superior’s City Council got its first glimpse of the 2020 city budget Tuesday, Sept. 17, and it shows little change from this year’s revenue and spending plan.
It contains no new initiatives and there was no room to address priorities beyond basic city services.
“A couple of years ago … the city undertook a new budgeting process where the goal is to have priority-based budgeting,” said Ashley Puetz, assistant finance director. She said while the Council identified several priorities, no changes were made to the 2020 budget to address those priorities.
The $30.8 million general fund budget increases 2.5% in 2020 from 2019 to fund current policies and staffing levels, which includes an 11.4% increase in the cost for health insurance.
With a levy cap of 1.39%, the overall property tax levy will increase by 0.89% in 2020 after a reduction in the overall levy in 2019. The overall levy for 2020 is $13.4 million.
“If the rate of growth, if it’s larger than that (0.89%), property taxpayers that have not seen a change in their value will actually see a tax decrease,” Mayor Jim Paine said.
“To fill in the rest of the revenue needed, we looked to other revenue sources,” Puetz said. “We budgeted $168,000 increase in local street and road aid, and also a $538,000 increase in our oil pipeline terminal tax transfer to the general fund.”
The city’s tax levy represented about 37% of overall property tax collections in 2019.
The Council will consider adopting the 2020 budget when it meets again Oct. 1.